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1 LIFE CYCLE ANALYSIS

2 opyright NextGen 2 Life Cycle Analysis

3 opyright NextGen What is LCA? 3 LCA is a technique for assessing the environmental aspects and potential impacts associated with a product, by Compiling an inventory of relevant inputs and outputs of a product system Evaluating the potential environmental impacts associated with those inputs and outputs Interpreting the results of the inventory analysis and impact assessment phases in relation to the objectives of the study

4 opyright NextGen Life Cycle stages of Product 4

5 Why LCA? 5 Identifying opportunities to improve the environmental aspects of products Taking important Business Decisions Selection of relevant indicators of environmental performance, including measurement techniques Marketing

6 LCA - Steps 6

7 LCA framework - Based on ISO Standards 7

8 Goal and Scope Lawkim Motors 8 Goal Better understand the environmental performance of a hermetic motor related to all life cycle stages Product Development and improvement Strategic Planning Marketing of the product The study provides a useful perspective for different stakeholder groups, such as consumers, retailers, suppliers of raw materials, media, government agencies and non government organisations Scope Scope of this study was developing a cradle to grave LCA of hermetic motors with aluminium windings The functional unit considered in the study is 1 unit of hermetic motor which is the basis of comparison *Goal and Scope are defined based on discussion of NextGen with Lawkim Motors

9 LCA framework - Based on ISO Standards 9

10 Life Cycle Stages for Lawkim Motors 10 Assembly/Manufacturing Packing Transportation Use Phase End of Life

11 Raw Materials used and their weight 11 Item Weight Source Copper kg/ 1 unit of hermetic motor Data provided by Lawkim Motors Steel kg/ 1 unit of hermetic motor Data provided by Lawkim Motors Aluminum kg/1 unit of hermetic motor Data provided by Lawkim Motors. Corrugated Packaging Material kg/1 unit of hermetic motor Assumptions :1 box carries 112 stator and the weight is kg. - 1 box carries 520 rotor and the weight is 35kg.

12 LCA framework - Based on ISO Standards 12

13 Impact Categories 13 Global Warming Potential Acidification Eutrophication Photochemical Ozone Creation Potential Impact Categories are identified as per the goal of LCA which was to understand the environmental performance of a hermetic motor related to all life cycle stages The Operations of Lawkim doesn t contribute much to other major impact categories like Human Toxicity, Casualities, Noise, Species and Organisms dispersal, Biotic resource depletion, Abiotic resource depletion etc

14 Global Warming Potential - Impacts 14 Increased warming of the troposphere due to anthropogenic greenhouse gases (GHG), e.g., from the burning of fossil fuels The GWP is calculated in carbon dioxide equivalents (CO 2 -equivalent). This means that the GWP of an emission is given in relation to CO 2

15 Acidification Potential - Impacts 15 The acidification of soils and waters occurs predominantly through the transformation of air pollutants into acids. Sulphur dioxide and nitrogen oxide and their respective acids (H2SO4 und HNO3) produce relevant contributions. This damages ecosystems, whereby forest dieback is the most well-known impact. Acidification has direct and indirect damaging effects (such as nutrients being washed out of soils or an increased solubility of metals into soils). But even buildings and building materials can be damaged. Examples include metals and natural stones which are corroded or disintegrated at an increased rate.

16 Eutrophication Potential - Impacts 16 Excessive nutrient input into water and land from substances such as phosphorus and nitrogen from agriculture, combustion processes and effluents Nitrate at low levels is harmless from a toxicological point of view. However, nitrite, a reaction product of nitrate, can be toxic to humans at excessive doses. The EP is calculated in phosphate equivalents (kg N-equivalent)

17 POCP Smog Potential - Impacts 17 Formation of low-level ozone by sunlight instigating the photochemical reaction of nitrogen oxides with hydrocarbons and volatile organic compounds (VOCs). In LCAs, POCP is referred to in nitrogen oxide equivalents (kg NOx-equivalent).

18 opyright NextGen 18 Hermetic Motors

19 Hermetic Motors 19 Hermetic Compressor Motor typically consist of set of Wound Stator & Rotor without shaft, motor body end covers and bearings. There is no standard for size and rating of these motors, though some sizes are regarded as industry standards. Hermetic Motor complies to following requirements: The insulation system is compatible to refrigerants like R22, R134a, R410 and Hydrocarbons, corresponding lubrication oils. Motor insulation system has to be very reliable & can sustain continuous temperature of 135 and extreme conditions up 145 for short intervals. Source : Lawkim Motors

20 Hermetic Motor considered for study 20 This is a custom designed motor suitable to Godrej Appliances compressors The motor is suitable for low back pressure compressors of displacement capacities from 6cc to 11cc This refrigeration system can use hydrocarbon gas and R134a as refrigerants These compressors are suitable for Refrigerators of Capacity 100 Litres up to 300 litres The compressors have very Energy Efficiency Ratio (ratio of Cooling Power & Input power) to world class levels in each category These compressors are used in frost free and direct cool refrigerators with various star ratings Source : Lawkim Motors

21 Process Flow Chart - Stator 21 Source : Lawkim Motors

22 Process Flow chart - Rotor 22 Source : Lawkim Motors

23 opyright NextGen 23 Estimation

24 Global Warming Potential 24 Emission Source Emissions in MTCO 2 e/unit Assumptions / Source Copper E-05 Aluminium Data from Lawkim Steel World Steel Association Corrugated Packaging Material PE Americas and Five Winds International Inbound Logistics Data from Lawkim Lawkim Carbon Footprint Data from Lawkim Outbound Logistics Data from Lawkim Life of a hermetic motor 4.1 Reverse Logistics Data from Lawkim Recycle of steel scrap Recycle of Aluminium scrap Recycle of Copper scrap Recycle of Corrugated Boxes E-05 Total kwh/annum for 20 Years. Data from Lawkim Motors Same material used for mfg is recycled. Source : World Steel Association Same material used for mfg is recycled. Source : Data from Lawkim Same material used for mfg is recycled.source : Same material used for mfg is recycle. Source : PE Americas and Five Winds International

25 1.27E E GWP Emission source wise 25 GWP EMISSION SOURCE WISE Use Phase 4.1MTCO2e/unit for 20 years. # This is not to the scale C O P P E R A L U M I N I U M S T E E L C O R R U G A T E D P A C K A G I N G M A T E R I A L I N B O U N D L O G I S T I C S L A W K I M C A R B O N F O O T P R I N T O U T B O U N D L O G I S T I C S L I F E O F A H E R M E T I C MOTOR R E V E R S E L O G I S T I C S R E C Y C L E O F S T E E L S C R A P R E C Y C L E O F A L U M I N I U M S C R A P R E C Y C L E O F C O P P E R S C R A P R E C Y C L E O F C O R R U G A T E D B O X E S

26 GWP Contribution 26 GWP Contribution 0% 0% 0% -9% 31% -19% 1% 3% 7% 1% 0% 27% Copper Aluminium Steel Corrugated Packaging Material Inbound Logistics Lawkim Carbon Footprint Outbound Logistics Reverse Logistics Recycle of steel scrap Recycle of Aluminium scrap Recycle of Copper scrap Recycle of Corrugated Boxes *Life cycle of a hermetic motor is not considered in the chart

27 Acidification Values 27 Copper Source Value in kgso2e/ 1 unit of hermetic motor E-05 Assumptions / Source (includes value of recycling also) Aluminium European Aluminium Association Steel World Steel Association Corrugated Packaging Material PE Americas and Five Winds International Recycle of steel scrap Recycle of Aluminium scrap Recycle of Corrugated Scrap 0.00 Total 1.84 Same material used for mfg is recycled Source : World Steel Association Same material used for mfg is recycled Source : European Aluminium Association Same material used for mfg is recycled Source : PE Americas and Five Winds International

28 Acidification Values Emission source wise E+00 Value in kgso2e/ 1 unit of hermetic motor 1.80E E E E E E E E E E+00 Copper Aluminium Steel Corrugated Packaging Material

29 Eutrophication Values 29 Copper Source Value in kgpo4e/ 1 unit of hermetic motor E-06 Assumptions / Source (includes value of recycling also) Aluminium European Aluminium Association Steel World Steel Association Corrugated Packaging Material E-05 PE Americas and Five Winds International Recycle of steel scrap -3.34E-04 Recycle of Aluminium scrap Recycle of Corrugated Scrap Total E E-01 Same material used for mfg is recycled.source : World Steel Association Same material used for mfg is recycled Source : European Aluminium Association Same material used for mfg is recycled Source : PE Americas and Five Winds International

30 Eutrophication Values Emission source wise E-01 Value in kgpo4e/ 1 unit of hermetic motor 1.00E E E E E E+00 Copper Aluminium Steel Corrugated Packaging Material

31 Photochemical Ozone Creation Potential 31 Copper Source Value in kgethene-e/ 1 unit of hermetic motor E-06 Assumptions / Source (includes value of recycling also) Aluminium European Aluminium Association Steel World Steel Association Corrugated Packaging Material E-06 PE Americas and Five Winds International Recycle of steel scrap Recycle of Aluminium scrap Recycle of Corrugated Scrap Total E E-02 Same material used for mfg is recycled Source : World Steel Association Same material used for mfg is recycled Source : European Aluminium Association Same material used for mfg is recycled Source : PE Americas and Five Winds International

32 Values in kgethene-e/1 unit of hermetic motor POCP Emission source wise 32 Value in kgethene-e/ 1 unit of hermetic motor 1.40E E E E E E E E+00 Copper Aluminium Steel Corrugated Packaging Material Source

33 LCA framework - Based on ISO Standards 33

34 Interpretation and Recommendations 34 The impact assessment shows the main environmental impact on the life cycle of the hermetic motor is caused by Aluminium and electricity during operation It also shows the importance of recycling and waste treatment It is also crucial that the electricity used in manufacture is as environment friendly as possible Customers should be encouraged to use environmentally friendly electricity such as use of renewable energy sources There are several questions regarding possible improvements, such as : Are there any environment friendly alternatives to Aluminium wires? Is there anything which can be done in design phase to reduce the electricity consumption of the motor as the major impact comes from usage phase?

35 opyright NextGen 35 References

36 Copper Wire LCA Results - GWP 36 The environmental profile of copper products by European Copper Institute

37 Copper Wire Acidification Potential 37 The environmental profile of copper products by European Copper Institute

38 Copper Wire - POCP 38 The environmental profile of copper products by European Copper Institute

39 Steel Hot Rolled Coil - GWP 39 World Steel Association : LCI Data for steel products by Dr. Peter Hodgson, Tata Steel

40 Steel Hot Rolled Coil - Acidification 40 World Steel Association : LCI Data for steel products by Dr. Peter Hodgson, Tata Steel

41 Steel Hot Rolled Coil - Eutrophication 41 World Steel Association : LCI Data for steel products by Dr. Peter Hodgson, Tata Steel

42 Steel Hot Rolled Coil - POCP 42 World Steel Association : LCI Data for steel products by Dr. Peter Hodgson, Tata Steel

43 Corrugated Packing - GWP 43 Corrugated Packaging Life Cycle Assesment Summary Report, Prepared for Corrugated Packaging Alliance, Prepared by PE Americas and Five Winds International.

44 Corrugated Packing Acidification Potential 44 Corrugated Packaging Life Cycle Assesment Summary Report, Prepared for Corrugated Packaging Alliance, Prepared by PE Americas and Five Winds International.

45 Corrugated Packing Eutrophication Potential 45 Corrugated Packaging Life Cycle Assesment Summary Report, Prepared for Corrugated Packaging Alliance, Prepared by PE Americas and Five Winds International.

46 Corrugated Packing - POCP 46 Corrugated Packaging Life Cycle Assesment Summary Report, Prepared for Corrugated Packaging Alliance, Prepared by PE Americas and Five Winds International.

47 Declaration from NextGen 47 The study is carried out according to ISO Emission Factors used are from DEFRA US EPA CEA ARAI GWP, Acidification, Eutrophication and POCP as impact categories are considered in this report This is a draft presentation Data for estimation is collected for CY % of Lawkim s major customer (Godrej Appliances) requirement is met with Aluminum winding wires, so this report is only for hermetic motors with Aluminum winding wires

48 opyright NextGen 48 Golden Peacock Award

49 GPA Overview 49 The only award, which has meticulously defined and transparent selection criteria and is determined by a highly elaborate and independent assessment process. The award builds your BRAND EQUITY and worldwide recognition. Award winners are eligible to use the Golden Peacock Awards LOGO on all promotional literatures. Preparation for award application helps to inspire and align the entire workforce and rapidly accelerates the PACE OF SYSTEM IMPROVEMENT. Even, if you don t win the award, the PREPARATION & FEEDBACK helps your strategic learning process to put you, on your way to achieving world-class status. Application Details : Large & Small and Medium Enterprises fees Rs. 39,500/ % Service Tax as applicable

50 Timeline for GPA 50 S. No Category Name of Award Last-Date for submission (Tentative) 1 NATIONAL Golden Peacock HR Excellence Award 10-Dec NATIONAL 3 GLOBAL Golden Peacock Award for Corporate Social Responsibility Golden Peacock Global Award for Corporate Social Responsibility 10-Dec Dec NATIONAL Golden Peacock National Quality Award 28-Feb NATIONAL Golden Peacock National Training Award 28-Feb NATIONAL Golden Peacock Innovative Product/ Service Award 28-Feb NATIONAL Golden Peacock Environment Management Award 8 NATIONAL Golden Peacock Occupational Health and Safety Award 9 NATIONAL Golden Peacock Eco-Innovation Award 10 NATIONAL Golden Peacock Business Excellence Award 11 NATIONAL 12 GLOBAL Golden Peacock Award for Excellence in Corporate Governance Golden Peacock Global Award for Excellence in Corporate Governance 31-May May May Jul Sep Sep NATIONAL Golden Peacock Award for Sustainability 05-Sep GLOBAL Golden Peacock Global Award for Sustainability 05-Sep NATIONAL Golden Peacock Innovation Management Award 05-Sep-2015 Date of Result announcement ( Tentative ) 20-Dec Mar June Jul Sep-2015 Awards ceremony (Tentative ) Awards presentation during the 9th International Conference on Corporate Social Responsibilityon January 2015 Mumbai East (India) Awards presentation during 25th World Congress on Total Quality & Leadership on April 2015, Dubai (UAE) Awards presentation during the17th World Congress on Environment Management on July 2015, New Delhi (India) Awards presentation during the "Global Summit on Business Excellence", on 21 st August 2015, Ahmedabad, Gujarat (India) Awards presentation during the London Global Convention 2015 incorporating 15th International Conference on Corporate Governance & Sustainability in 7-9 October 2015 in London (UK)

51 Process 51 Site Visit: These are organized to verify that written submission truly reflects organization s system and process, and to investigate areas that may be difficult to describe in a short document, and to determine additional facts where appropriate. Finalists: In case of well contested important awards, the jury may only short list the finalists for a closer look by another committee. In that case, the finalist organizations are invited to make brief public presentations, highlighting their major initiatives and achievements in that field and reply to any clarifications required by the final independent jury, before the winners are announced. Feed Back Report: At the conclusion of the evaluation process, a written report incorporating the evaluators assessment of organization s performance against the GPA Framework is forwarded. This report is written in terms of strengths and opportunities for improvement against the assessment criteria. Presentation of Awards: The presentation of awards is normally held during national and international conferences organized by the IOD. All organizations are encouraged to publicize their achievements and to share their experiences with others.

52 GPA - Panel of Judges 52

53 53 Thank You

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